Martin Wolf on the Euro Crisis

His latest contribution is here.

11 replies on “Martin Wolf on the Euro Crisis”

“Ms Merkel and Mr Sarkozy are due to hold a call with Greek prime minister George Papandreou tomorrow.”

“Ms Merkel said today she would not let Greece go into uncontrolled insolvency”

Er, does that mean they’re phoning to tell George he’s going to get an orderly default then?

Reading George’s speech on Saturday night, it looked like the words of a very insecure man and to not ‘trail’ the property tax coming the next day suggests that the decision to have it was only actually taken as a rabbit out of the hat at the cabinet meeting on Sunday morning.

Greece has run out of rabbits. Greece is toast.

As for Germany, you really can see them picking up their football and going home for their tea and leaving the other kids standing around with their hands in their pockets, kicking tin cans.

This is a great article from Martin Wolf. One of his best in a while.

People may call me a conspiracy nut but the entire German reaction does not make sense unless you realise that they don’t hold the shiny stuff that is on their books – the man from the US treasuary said no – it stays under Manhattan…. maybe the Germans have no choice unless John McClane is retired and the Gruber brothers are still in business.

Otherwise the solution to the INTERNAL debt problem is simple.

The Bundesbank is a Post war CIA creation after all.
What other country forces itself into mercantile austerity when it has so much wealth ? ah yes Japan , the other colony- something stinks here.

@Mike Hall

That’s a very interesting article – thanks for the link. One line actually made me laugh:

“The ‘growth-friendly’ austerity is a lovely turn of phrase. Who invents this sort of stuff?”

Prof. Mitchell has obviously never met a German PR Guy.

I’m sitting here wondering which card is going to fall first and if it will fall this week.

I wish I could get a recording of that Papend/Merkel/Sarko phone call this evening.

Nice summary article from today’s Guardian.

Jayati Ghosh: “Spooked into austerity, we dig our own grave.”

“So there must be restructuring of the financial system: giant institutions must be downsized; the activities of commercial and investment banking should be clearly separated; and the aim should be more diverse financial systems, with a bigger role for public and co-operative institutions. Commodity markets, which have been subject to wild price swings related to speculative and herd behaviour, need to be made more transparent, with more controls on financial activity and direct intervention when required to curb price bubbles and prevent sharp declines.”

Germany is moving into very deep water with no charts to guide it. Many of the accommodations that followed WW2 are breaking down. Its decision to phase out nuclear power post Fukushima was very rash. It has to decide whether to sink or save the Euro. And it has a real problem in deciding how to proceed with Israel and the movement for a Palestinian state.

2011 ist wirklich verrückt.

I just heard Pat Kenny reporting that Ollie Rehn said a Greek default would affect the whole world. Isn’t it peculiar that a little place like Greece could affect the whole world or is Ollie just bullshitting again?

@Lord Wellington
I am proud of my core beliefs – there is just 2 churches on this earth , the US treasuary & the BIS – they may have merged recently into one unholy alliance.

I hope not – such power corrupts absolutely.

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